How to navigate tariff volatility: Mitigation strategies

We’re witnessing remarkable changes in the global trade landscape in 2025. Tariffs have evolved from a tactical consideration into a top prority for virtually every organization involved in global trade — and our conversations with trade professionals confirm the pressure you’re feeling. For corporate trade professionals, the question is no longer whether to adapt — it’s how quickly and effectively you can implement strategies that protect your organization’s bottom line while maintaining competitive advantage.

Our 2026 Global Trade Report from the Thomson Reuters Institute reveals what we’re seeing across the industry: more than three-quarters (76%) of trade professionals believe the new tariffs imposed by the U.S. represent a more permanent approach to global trade, at least for the next four years. This isn’t a temporary disruption we’ll weather — it’s a fundamental restructuring of how global commerce operates.  The good news? Leading organizations are already taking decisive action, and our research shows which strategies are delivering the best results.

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Restructuring your supply chain: Change sourcing patterns

The most common tariff mitigation strategy, cited by 65% of respondents, involves changing sourcing patterns. This indicates that businesses are fundamentally restructuring their supply chains to reduce tariff exposure rather than simply accepting increased costs.

But changing sourcing patterns isn’t just about switching suppliers — it’s about strategic diversification. Trade professionals are broadening their supplier base across multiple countries and regions, reducing dependency on any single source that might be subject to tariff increases. This approach requires careful analysis of total landed costs, including not just tariffs but also logistics, quality considerations, and reliability factors.

One respondent described the increasing need to reshuffle supplier relationships, saying: “Changes in tariffs cause uncertainty in shipping and procurement, which raises logistical costs and makes maintaining agreements with exporters more difficult”.

Successful sourcing pattern changes also involve nearshoring and reshoring strategies. More than half (51%) of respondents say their organization is either moving or considering moving manufacturing to the United States to avoid tariffs, representing a significant increase from previous years.

Strengthening partnerships: Renegotiate supplier contracts

A majority (57%) of respondents report their organization plans to renegotiate contracts with suppliers. In today’s volatile environment, contracts written even a year ago may no longer reflect current realities around costs, delivery timelines, or tariff responsibilities.

Effective contract renegotiation goes beyond simply demanding lower prices. Leading organizations are exploring several approaches:

Negotiating bulk purchases before new tariffs take effect to lock in current pricing
Establishing fixed-price contracts to maintain price stability despite tariff fluctuations
Clarifying tariff responsibility in contracts to avoid disputes over who absorbs increased costs
Building in flexibility clauses that allow for adjustments as tariff situations evolve

The goal isn’t just cost reduction — it’s creating partnerships that can withstand ongoing tariff volatility while maintaining quality and reliability.

Leveraging technology: Increase your tech budget

Here’s the shift we didn’t see coming: technology adoption is exploding. Four-in-ten respondents now say they’re exploring emerging technologies like AI or blockchain — up from just 6% last year. That’s not gradual change; that’s recognition that manual processes can’t keep up with today’s complexity.

Trade/supply chain data analytics is the most widely used trade technology, with 58% of respondents saying their organization has deployed this tool. This recognizes that data-driven decision-making is increasingly essential to manage the complex and volatile trade and tariff landscape.

Technology investments should prioritize:

Real-time visibility into supply chains and tariff changes
Predictive analytics to anticipate and resolve issues before they impact operations
Automated compliance tools to manage the increasing regulatory burden
Scenario planning capabilities to model different tariff outcomes

We’re combining AI-powered analytics with real-time data integration to help you do exactly this. Our trade management solutions continuously monitor regulatory changes, flag compliance risks before they become issues, and provide scenario modeling so you can evaluate different sourcing strategies with confidence.

Additional critical tariff mitigation strategies

Beyond these core approaches, leading organizations are implementing several other strategies:

Classification and origin engineering: 46% are using classification engineering to ensure products are properly classified under tariff codes that minimize duty exposure, while 29% are employing origin engineering strategies.

Absorbing costs strategically: 39% of respondents report that their organization is either absorbing or considering absorbing tariff costs rather than passing them on to customers. While this impacts profitability, it may be necessary to maintain competitive position in price-sensitive markets.

Utilizing duty deferral programs: Foreign Trade Zones and Temporary Importation under Bond (TIB) programs allow companies to defer or eliminate certain duties, with 36% of organizations using or considering duty deferral strategies.

How to build resilience for long-term tariff volatility

The current challenges present a unique opportunity to embed trade’s expanded responsibilities across the organization on an ongoing basis, while building capabilities that can provide the business with enduring resiliency and competitive advantages.

The trade professionals who will thrive in this environment are those who view these challenges not as temporary obstacles but as catalysts for fundamental transformation. By changing sourcing patterns, strengthening supplier relationships, and leveraging technology, you can position your organization not just to survive tariff volatility — but to gain competitive advantage from it.

Ready to dive deeper?

Download the complete 2026 Global Trade Report for comprehensive insights, detailed survey data, and actionable recommendations from 225 trade professionals worldwide.